KFC China sales bounce back

The US company, which last month revealed plans to spin off its Chinese operations into a separate company, said total Chinese October same-store sales grew an estimated five per cent, compared to same-store sales growth of six per cent in September.

“We are reiterating our guidance for the fourth quarter of China Division same-store sales growth of zero to four per cent, with positive same-store sales growth at KFC and negative same-store sales at Pizza Hut Casual Dining,”the company said in a statement.

“As previously stated, same-store sales remain difficult to forecast in China, and our overlaps become more difficult for the balance of the year.”

Yum China has 6900 KFC and Pizza Hut restaurants, but has struggled for more than two years after high profile food safety scares involving suppliers.

Mid last year, a Chinese TV network screened footage of a supplier mixing allegedly expired meat with fresh meat. The company, a subsidiary of OSI Group, was a minor supplier to Yum! and its contract was cancelled immediately. But the TV news footage was sufficient to spook Chinese customers, many of whom stopped eating at KFC China outlets.